The FOMC is the Federal Reserve's monetary policymaking body. It consists of 12 voting members: the 7 Board of Governors, the NY Fed president (permanent voter), and 4 of the remaining 11 regional Fed presidents who rotate annually.
Meeting Schedule & Outputs
The FOMC meets 8 times per year (~every 6 weeks). Each meeting produces: (1) a policy statement with the rate decision, (2) a press conference by the Chair, and (3) minutes released 3 weeks later. Quarterly meetings also include the Summary of Economic Projections (SEP) with the dot plot.
Hawks vs. Doves
FOMC members are informally classified as 'hawks' (favor tighter policy to fight inflation) or 'doves' (favor easier policy to support employment). The Chair (currently Jerome Powell, appointed 2018, reappointed 2022) wields outsized influence by setting the agenda and guiding consensus.
Why Markets Care
FOMC decisions directly move interest rates, and forward guidance shapes expectations for months ahead. The statement is released at 2:00 PM ET and the press conference begins at 2:30 PM β this 30-minute window produces some of the highest volatility of the year. Markets parse every word change using redline comparisons.
Historical Context
Notable FOMC decisions: Volcker's emergency rate hikes to 20% (1981), Greenspan's 'measured pace' rate hikes (2004-2006), Bernanke's QE launch (2008), the COVID emergency rate cut to zero in March 2020 (two unscheduled meetings within 13 days), and the 2022-2023 aggressive hiking cycle.
The Blackout Period
FOMC members enter a 'blackout period' starting the second Saturday before each meeting, during which they cannot make public comments on monetary policy. Speeches before blackout often preview the upcoming decision.